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UNFI now expects fiscal 2025 sales of $31.6-$31.8B, up from the previous range of $31.3-$31.7B.
Adjusted EBITDA forecast was trimmed to $535-$565M due to a fourth-quarter cyber incident.
UNFI now expects $200M in free cash flow, up from $150M and reversing fiscal 2024's negative result.
United Natural Foods, Inc. (UNFI - Free Report) , North America’s premier grocery wholesaler, has updated the fiscal 2025 financial outlook while reaffirming confidence in the long-term strategic goals. The company’s latest update reflects both strong performance through the first three quarters of fiscal 2025 and the financial impact of a cyber incident in the fourth quarter.
Despite the challenges, UNFI remains committed to advancing the partner-first strategy, improving efficiency and accelerating its multi-year growth plans.
UNFI’s Updated Fiscal 2025 Outlook
For fiscal 2025, UNFI now anticipates net sales of $31.6-$31.8 billion, compared with the prior forecast of $31.3-$31.7 billion. The updated outlook represents a 2.3% increase over fiscal 2024.
Adjusted EBITDA is now expected to be between $535 million and $565 million, slightly below the previous estimate of $550-$580 million, still indicating 6.2% growth over the prior year.
Adjusted EPS has been revised to 40-80 cents compared with the prior range of 70-90 cents, implying the temporary impact of the cyber incident.
Free cash flow is projected at approximately $200 million compared with the prior forecast of $150 million. The metric is expected to witness a substantial improvement from negative $92 million in fiscal 2024.
UNFI’s Cybersecurity Incident and Operational Response
In the fourth quarter of fiscal 2025, United Natural Foods faced a cybersecurity incident that temporarily disrupted its operations. The company expects the cyber incident to reduce fiscal 2025 net sales by about $350-$400 million and lower adjusted EBITDA by $40-$50 million. It also expects $20 million in incremental incident-driven costs and about $5 million in remediation expenses, leading to a total estimated net loss of $50 million to $60 million, which includes the estimated tax impact.
Despite the disruption, UNFI’s primary ordering systems were restored within 10 days, and it is now operating at more normalized levels. UNFI expects no material operational or financial impact beyond fiscal 2025, aside from anticipated insurance reimbursements, which are expected to cover recovery and remediation costs.
UNFI’s Strategic Blueprint for Growth
The company continues to benefit from lean management practices, wholesale business realignment and the optimization of unprofitable operations. With lean daily management expanding across its network and ongoing customer support efforts, United Natural Foods remains committed to long-term value creation, despite recent cybersecurity challenges.
United Natural Foods’ natural and organic business continues to exhibit impressive growth, driven by heightened consumer demand for healthier and more sustainable products. This aligns with broader consumer trends favoring “better-for-you” products, which have proven resilient and increasingly popular. Furthermore, the company’s ability to deliver value-added services and insights to retailers has solidified its position as a trusted partner in this high-growth market.
UNFI Investment Analysis
UNFI’s revised financial outlook reflects near-term challenges from the recent cybersecurity incident, leaving investors cautious about its short-term performance. However, the company’s continued focus on operational efficiency, strategic network optimization and growth in the natural and organic segments indicates strong potential for long-term value creation. UNFI currently carries a Zacks Rank #3 (Hold).
Shares of United Natural Foods have gained 22.3% in the past month compared with the industry and S&P 500's growth of 0.4% and 4.5%, respectively.
The consensus estimate for Post Holdings’ current fiscal-year earnings implies growth of 6.5% from the year-ago figures. POST delivered a trailing four-quarter earnings surprise of 22.9%, on average.
TreeHouse Foods, Inc. (THS - Free Report) manufactures and distributes private brands snacks and beverages in the United States and internationally and presently sports a Zacks Rank of 1. THS delivered a trailing four-quarter earnings surprise of 58.8%, on average.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial-year sales indicates growth of 0.4% from the year-ago number.
BRF S.A. (BRFS - Free Report) raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings indicates growth of 11.1% and 8.3%, respectively, from the prior-year levels.
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UNFI Revises 2025 Guidance, Maintains Long-Term Growth Focus
Key Takeaways
United Natural Foods, Inc. (UNFI - Free Report) , North America’s premier grocery wholesaler, has updated the fiscal 2025 financial outlook while reaffirming confidence in the long-term strategic goals. The company’s latest update reflects both strong performance through the first three quarters of fiscal 2025 and the financial impact of a cyber incident in the fourth quarter.
Despite the challenges, UNFI remains committed to advancing the partner-first strategy, improving efficiency and accelerating its multi-year growth plans.
UNFI’s Updated Fiscal 2025 Outlook
For fiscal 2025, UNFI now anticipates net sales of $31.6-$31.8 billion, compared with the prior forecast of $31.3-$31.7 billion. The updated outlook represents a 2.3% increase over fiscal 2024.
Adjusted EBITDA is now expected to be between $535 million and $565 million, slightly below the previous estimate of $550-$580 million, still indicating 6.2% growth over the prior year.
Adjusted EPS has been revised to 40-80 cents compared with the prior range of 70-90 cents, implying the temporary impact of the cyber incident.
Free cash flow is projected at approximately $200 million compared with the prior forecast of $150 million. The metric is expected to witness a substantial improvement from negative $92 million in fiscal 2024.
UNFI’s Cybersecurity Incident and Operational Response
In the fourth quarter of fiscal 2025, United Natural Foods faced a cybersecurity incident that temporarily disrupted its operations. The company expects the cyber incident to reduce fiscal 2025 net sales by about $350-$400 million and lower adjusted EBITDA by $40-$50 million. It also expects $20 million in incremental incident-driven costs and about $5 million in remediation expenses, leading to a total estimated net loss of $50 million to $60 million, which includes the estimated tax impact.
Despite the disruption, UNFI’s primary ordering systems were restored within 10 days, and it is now operating at more normalized levels. UNFI expects no material operational or financial impact beyond fiscal 2025, aside from anticipated insurance reimbursements, which are expected to cover recovery and remediation costs.
UNFI’s Strategic Blueprint for Growth
The company continues to benefit from lean management practices, wholesale business realignment and the optimization of unprofitable operations. With lean daily management expanding across its network and ongoing customer support efforts, United Natural Foods remains committed to long-term value creation, despite recent cybersecurity challenges.
United Natural Foods’ natural and organic business continues to exhibit impressive growth, driven by heightened consumer demand for healthier and more sustainable products. This aligns with broader consumer trends favoring “better-for-you” products, which have proven resilient and increasingly popular. Furthermore, the company’s ability to deliver value-added services and insights to retailers has solidified its position as a trusted partner in this high-growth market.
UNFI Investment Analysis
UNFI’s revised financial outlook reflects near-term challenges from the recent cybersecurity incident, leaving investors cautious about its short-term performance. However, the company’s continued focus on operational efficiency, strategic network optimization and growth in the natural and organic segments indicates strong potential for long-term value creation. UNFI currently carries a Zacks Rank #3 (Hold).
Shares of United Natural Foods have gained 22.3% in the past month compared with the industry and S&P 500's growth of 0.4% and 4.5%, respectively.
Image Source: Zacks Investment Research
Some Solid Bets
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged goods holding company in the United States and internationally. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Post Holdings’ current fiscal-year earnings implies growth of 6.5% from the year-ago figures. POST delivered a trailing four-quarter earnings surprise of 22.9%, on average.
TreeHouse Foods, Inc. (THS - Free Report) manufactures and distributes private brands snacks and beverages in the United States and internationally and presently sports a Zacks Rank of 1. THS delivered a trailing four-quarter earnings surprise of 58.8%, on average.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial-year sales indicates growth of 0.4% from the year-ago number.
BRF S.A. (BRFS - Free Report) raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings indicates growth of 11.1% and 8.3%, respectively, from the prior-year levels.